What are Land Trusts, and how have they been used to get (and keep) Affordable
Housing?
By Charles Reif
Certainly the first priority in providing affordable housing is to secure land. Where from? How obtained, by donation or purchase? How to raise the funds to purchase? All questions seeking solutions.
And beyond securing the land, there are two other questions: getting capacity for the land (ie. density), and getting funds to build housing.
Those questions led me to a workshop on Hornby Island on June 6 and 7, called “Community Housing for Small Communities”, sponsored by HICEEC (Hornby Island Community Economic Enhancement Corporation). The feature of this workshop was the attendance of the executive directors of 3 “community land trusts” (CLT”s) on the San Juan Islands*, which between them have built well over 100 affordable homes. The homes are either available for ownership (Orcas, San Juan) or held as co-ops (Lopez). What is common for all 3 organizations is that the land, once purchased , belongs to the non-profit land trusts, with leases to the homeowners or co-ops that preserve affordability in perpetuity. Very impressive. And they have improved the leases to ensure they stay with island residents, and remain owner-occupied (no Short Term Vacation Rentals). Also impressive is that what has been built is both attractive and sensitive to their island settings (see websites below, and have a look).
But I went to Hornby Island specifically to hear about getting capacity, and getting funds to build housing. And I found myself within the company of citizens from Hornby, Denman, Quadra, Cortes, Gabriola, Galiano, Pender and Salt Spring, all seeking similar answers. What did I find out?
1. For the successful projects in the San Juans, the land usually came as a donation, sometimes outright and sometimes as part of a larger scheme seeking rezoning. Sometimes the land had to be purchased, with gov’t grants or more often community financial support. Where possible, the land sought for “community housing” already had the zoning designation and density needed to make the project viable.
On Saturna Island, our OCP and Bylaws will require a rezoning to allow transfer (not increase) of density, as there is no land carrying an “affordable” density except Carefree Court.
2. The first projects of each of the 3 land trusts in the San Juans typically relied more heavily on Government Funding than did their later ones. Once a first project was in the ground, they each found it easier to raise private and public money for the next. Nevertheless, each project required packaging of funding from a number of sources.
Henry Kamphof of the CRD Housing Secretariat, Neddy Harris of
Saltspring Island Land Bank Society, and Janice Gautier the housing consultant
for the Mirikami Gardens project in Ganges, described the serpentine and difficult
routes to achieve project funding in B.C. The basis for project financing
starts with ownership of land, and at least 20% of the project costs (including
land) need to be secured before governments will look at it.
Some may ask, “Wouldn’t it be easier if the Saturna community
allowed small lots to be subdivided or strata’d, so the folks wanting
to own housing could go out and raise their own money to build, using their
lots as collateral?” Sounds better than all the hassles with Government.
Homeowners could use their own skills and initiative to build their own homes.
But that’s only if the lots are so affordable that those needing housing
can accumulate equity really fast! And if they can afford the size of mortgages
they’ll need to build 2 and 3 bdm cottages, and if the banks will give
them mortgages without a clause voiding any resale restrictions on the lots.
(Or if the community is willing to see its contributions to affordable housing
at risk of foreclosure, and the sell-off that would see a “special affordable”
lot become another “market property”). We were reminded on Hornby
that cottages do not stay affordable simply because they are small –
on Nantucket Island in Massachusetts, the demand for scarce land is so high
that cottages are selling for $1million. Maybe the affordability could be
protected if the financing were secured by islanders – the “backyard
bank” idea?
My personal feelings? I want a solution that works for those seeking secure housing, and works for the benefit of our island community for years to come. If that solution can be achieved by community support for individuals to build their own homes, I’m all for it. If we can’t find a way to make that work, then the community land trust model is there, it’s worked, it can support home ownership, while retaining the land and preserving affordability for the next owner and the next.
The answers to these questions depend on many things, but I was reminded at the Hornby Island conference that working together has its advantages. Learning from each other has its advantages. And balancing the future health of the community with the current priorities of our employers and employees will call on us to keep talking to each other, and to continue to seek a way forward that sustains our Saturna Island.
For a look at the ways community land trusts have worked to provide housing
in the San Juans, have a look at:
* Lopez Community Land Trust www.lopezclt.org
* Opal Community Land Trust (Orcas) www.opalclt.org
* San Juan Community Home Trust www.hometrust.org
The SATURNA COMMUNITY HOUSING SOCIETY –
who, what and why?
April 29th 2008 Public Meeting Notes
So What do you mean by "affordable
housing"?
What is a Land Trust?
Charles Reif, President
Anthony Green, Vice-President
Ellen McGinn, Secretary
Frank Godwin, Treasurer October 6, 2008
Annie Simmonds, Director at Large
